Do lower costs necessarily induce higher value ratings? An analysis of online hotel reviews

Xingbao (Simon) Hu and Yang Yang

Current Issues in Tourism, 2021, vol. 24, issue 16, 2357-2373

Abstract: Combining online reviews and secondary data, this study integrates transaction costs and travel costs to examine factors shaping travellers’ perceived value of hotel stays with a focus on the moderation effects of traveller and travel characteristics. Results of a mixed-effect ordered logit model reveal negative effects of transaction costs and travel costs, and these effects vary depending on travellers’ experience quality, expertise level, and travel mode. Particularly, travellers with higher experience quality are sensitive to transaction and travel costs when rating the value of hotel stays. Visitors travelling as a couple and on business are most sensitive to transaction costs, whereas those travelling with family and friends consider travel costs a critical factor. Travellers’ sensitivity to transaction costs also intensifies as reviewer expertise increases; by contrast, only travellers with limited and moderate expertise are sensitive to travel costs. Finally, implications for hotel marketing and revenue management are discussed.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13683500.2020.1810211 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rcitxx:v:24:y:2021:i:16:p:2357-2373

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcit20

DOI: 10.1080/13683500.2020.1810211

Access Statistics for this article

Current Issues in Tourism is currently edited by Jennifer Tunstall

More articles in Current Issues in Tourism from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().